Report Calls for More Oversight of Fannie, Freddie Pay

Excutives earned millions while taxpayers bailed them out

The inspector general of the Federal Housing Finance Agency (FHFA) called on Monday for more oversight of executive compensation at the Federal National Mortgage Association (PINK:FNMA) and the Federal Home Loan Mortgage Corp. (PINK:FMCC) — better known as Fannie Mae and Freddie Mac.

Compensation for senior staffers is set by Fannie Mae and Freddy Mac, while executive offers have their pay determined by the U.S. Treasury and the FHFA. Last year, the two federal mortgage corporations paid out $92 million to 90 of their top executives, while paying $455 million to 2,000 senior workers, Reuters noted.

The FHFA has been examining top level compensation at the two mortgage giants after a political firestorm erupted over revelations of multi-million dollar payments to senior executives in previous years. The two corporations received nearly $190 billion in federal bailouts in the wake of the financial crisis.

Finding that supervision of the mortgage companies’ compensation setting was “limited,” the FHFA has agreed to devise ways to boost its scrutiny of Fannie and Freddie pay packages. The FHFA enacted a pay freeze on Freddie and Fannie employees in 2010, which was later expanded to cover this year.